Question

B Ltd. forfeited 300 shares of ₹100 each, ₹70 called up, for non-payment of first call of ₹20 per share. Out of these, ..... shares were reissued for ₹60 per share as ₹70 paid up and ₹8,000 were transferred to Capital Reserve. How many shares were re-issued?

Options

• 1,000

• 200

• 400

• 160

Answer 1

200

Explanation:

Total forfeiture (300 shares) = 300 × 50 = ₹15,000

Reissued at = ₹60 as fully paid (₹70)

Discount per share = 70 − 60 = ₹10

Capital Reserve = Forfeiture on reissued shares − Discount allowed

Let number of reissued shares = x

Forfeiture on reissued shares = 50x

Discount allowed = 10x

Net transfer = 50x − 10x = 40x

Net transfer = ₹8,000

40x = 8,000

x = 200 shares